8 useful tips for buying off-plan property in UAE

8 useful tips for buying off-plan property in UAE

Buying off-plan property is a good option for investors looking for a more affordable price. Compared to ready-to-use properties off-plan units or those that are still on the plan are less expensive.

Below are eight useful tips that a real estate investor should take into account when purchasing off-plan property in UAE.


1.    Consulting before buying

Buyers wishing to acquire an off-plan property are recommended to ask for advice from a real estate consultancy licensed by the regulators. There they will be able to get complete information on the specifications of the property that have been agreed upon. In general, real estate consultancy is an important step for buyers to make a good deal, especially in a market of so many choices and real estate brands as in UAE.

2.    Check the developer’s reputation

Purchasing off-plan property buyer should choose a real estate developer with positive reputation. In Dubai, it won't be a problem to find out everything about any real estate developer. Investors have many channels and multiple tools to verify a developer's reputation as well as their history of construction, delivery and prices.

In addition to that, information about a real estate developer and its history helps in clarifying many things from its commitment to completing projects on time to having an escrow account. The Dubai Land Department keeps a special register called Real Estate Developers Registry that has names of all licensed real estate developers. Developers are not allowed to practice if they are not registered and licensed by DLD.

For instance, the Escrow Account Law issued in 2007, is a financial tool to preserve the rights of all parties, through which the department maintains real estate developers' funds not delivered to them unless a property is handed over to a buyer.

3.    Return on investment

Return on investment or ROI is one of the most important factors than an investor should take into consideration when buying a property off plan. ROI varies depending on market conditions. Average ROI ratio in Dubai is 7-9 percent, which makes it one of the cities with the highest return on real estate investment in the world.

4.    The project site

It is important to buy a property in a good location to have all the services that residents might need, including schools, hospitals and shopping centers. Choose a location that is close to a suitable road network that connects well with the rest of the city. Pay attention to the floor which еру intended unit will be on and the view it offers.

So before signing the contract, the buyer should find out all the details of the property in terms of its location and amenities available. They can even visit the project site to see it with their own eyes and ask for details on the spot from the residents.

5.    Quality of the property

Quality of property should be definitely taken into account when buying off plan. This includes the quality of the compound or the location where the property is built and the availability of important services. The buyer should pay attention to the finishing and the materials used in construction. Sometimes quality may not comply with what we see or hear from sales agents, brochures or images. To avoid this, it is advisable to visit other projects done by the same developer.

6.    Completion rate

When choosing the real estate developer to buy a residential unit, it is important to pay attention to their ability to deliver property, according to the timelines set before starting construction works. The shorter the time period between the promised date and hand-out date, the greater the developer’s reliability.

The buyer can ensure the credibility of real estate management companies and their rates of achievement by tracking their previous projects to know whether they are committed to delivering them on time or there are any delays in handing units out.

7.    Payment plans

Before signing the agreement, the buyer must specify the price of the property agreed upon and the payment plan. Now real estate developers offer many various payment plans that sometimes extend to 10 years. It should be noted that real estate developers add their interests to the selling price, so the longer the payment plan, the higher the cost the buyer will pay. Thus, that it is necessary to mention the expected completion date of the project in the off plan real estate purchase agreement and the compensation incurred by the developer in case of any delay.

The property price must not be paid in full before the completion of the construction works and the unit hand-out. It is also advisable to pay in installments as the construction work is still in progress.

8.    After-sales service

After-sales service is an essential part of real estate assets management. When customers are freed from procedures and routine, such as clearing property documents after purchasing or ownership changing and so on, it boosts their confidence.

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